SAP Message WS281 - Billing doc. type &1 is not defined for settlement of incidental costs

Diagnosis
Billing type &V1& is not defined for the settlement of incidentalcosts. Please use billing types with settlement type &V2&.

System Response
The system does not allow settlement of incidental costs.

Procedure
Choose a different billing type of change the Customizing settings forbilling type &V1&.